- Oct 25, 2021
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Chamber of Deputies Passes New Crypto Bill in Brazil
The Chamber of Deputies of the Congress of Brazil has
The regulation doesn’t mention cryptocurrencies by name, and instead uses the term “virtual currencies.” However, the project does clarify that it doesn’t affect the digital representations of the national fiat currency (the real), other international currencies, or rewards points given by some companies in advertising campaigns. A virtual currency is defined as a representation of value that can be used electronically for payments or for investment purposes.
Harsher Penalties and a Central Regulator
The text includes specific penalties for cryptocurrency-related crime and establishes a new penalty for exchanges or parties that illegally manage cryptocurrency portfolios for third parties. This crime is classified as a type of embezzlement and would be punishable by four to eight years in prison and fines.
While the bill establishes a central regulator, it cannot name it explicitly for legal reasons. However, Expedito Netto, the rapporteur of the commission that carries the law, stated that it’s likely this body will be the nation’s central bank.
If approved, Brazil would join a group of countries in Latam that have dedicated rules for cryptocurrency assets, which are classified differently from other, similar assets. El Salvador is one of these countries, approving its so-called “Bitcoin Law” recently,
Paraguay has also taken steps in this direction,
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